Indiana DOI Puts Standard Life of Indiana in Rehab!!!

[insuranceexec]

I just read the disclaimer that was put out by the IN DOI referring to Standard Life of Indiana. It stated that all surrender requests, either full or partial, would be temporarily placed on hold, and for all annuity customers to just hold tight.

What is the max. length of time for the DOI to place a hold?

A customer of mine called and wanted to know when they can expect their money. Thanks in advance for all of your help!!

 

[somarco]

IBJ.com - Indianapolis Business Journal - Story Detail

STLI Standard Life Insurance Company of Indiana Taken Over by Insurance Department

Doesn't look good.

When Mutual Ben had a similar problem a few years ago surrenders were put on hold for a few weeks (as I recall). Similar with Baldwin United.

This is done to prevent (or forestall) a run on the carrier.

They do it trying to buy some time until a suitable carrier can be located to assume the business.

It looks like they are trying to rehab the carrier. You can read about what happens under a rehab by clicking here.

http://www.ins.state.pa.us/ins/lib/ins/consumer/brochures/liquid_rehab.pdf

 

[insuranceexec]

IBJ.com - Indianapolis Business Journal - Story Detail

STLI Standard Life Insurance Company of Indiana Taken Over by Insurance Department

Doesn't look good.

When Mutual Ben had a similar problem a few years ago surrenders were put on hold for a few weeks (as I recall). Similar with Baldwin United.

This is done to prevent (or forestall) a run on the carrier.

They do it trying to buy some time until a suitable carrier can be located to assume the business.

It looks like they are trying to rehab the carrier. You can read about what happens under a rehab by clicking here.

http://www.ins.state.pa.us/ins/lib/ins/consumer/brochures/liquid_rehab.pdf

I thank you for the post. Keep up the great work of keeping us educated..